ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis
NYSE:ARR - New York Stock Exchange, Inc. - US0423157058 - REIT - Currency: USD
Taking everything into account, ARR scores 4 out of 10 in our fundamental rating. ARR was compared to 64 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ARR has a bad profitability rating. Also its financial health evaluation is rather negative. ARR is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
ARR had positive earnings in the past year.
ARR had a positive operating cash flow in the past year.
In the past 5 years ARR reported 4 times negative net income.
Of the past 5 years ARR 4 years had a positive operating cash flow.
1.2 Ratios
ARR has a Return On Assets of -0.19%. This is in the lower half of the industry: ARR underperforms 62.50% of its industry peers.
Looking at the Return On Equity, with a value of -1.94%, ARR is doing worse than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -1.94% | ||
| ROIC | N/A |
ROA(3y)-1.14%
ROA(5y)-1.48%
ROE(3y)-9.99%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ARR's Gross Margin of 1.09% is on the low side compared to the rest of the industry. ARR is outperformed by 90.63% of its industry peers.
In the last couple of years the Gross Margin of ARR has declined.
The Profit Margin and Operating Margin are not available for ARR so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.09% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-71.79%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for ARR has been increased compared to 1 year ago.
The number of shares outstanding for ARR has been increased compared to 5 years ago.
ARR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -1.06, we must say that ARR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.06, ARR is not doing good in the industry: 95.31% of the companies in the same industry are doing better.
The Debt to FCF ratio of ARR is 40.98, which is on the high side as it means it would take ARR, 40.98 years of fcf income to pay off all of its debts.
ARR has a Debt to FCF ratio of 40.98. This is in the better half of the industry: ARR outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 7.87 is on the high side and indicates that ARR has dependencies on debt financing.
ARR has a worse Debt to Equity ratio (7.87) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.87 | ||
| Debt/FCF | 40.98 | ||
| Altman-Z | -1.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
ARR has a Current Ratio of 0.01. This is a bad value and indicates that ARR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.01, ARR is doing worse than 98.44% of the companies in the same industry.
ARR has a Quick Ratio of 0.01. This is a bad value and indicates that ARR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.01, ARR is doing worse than 98.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.01 | ||
| Quick Ratio | 0.01 |
3. Growth
3.1 Past
The earnings per share for ARR have decreased strongly by -20.86% in the last year.
Measured over the past years, ARR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.48% on average per year.
Looking at the last year, ARR shows a quite strong growth in Revenue. The Revenue has grown by 12.36% in the last year.
ARR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.97% yearly.
EPS 1Y (TTM)-20.86%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%-27.1%
Revenue 1Y (TTM)12.36%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%118.97%
3.2 Future
Based on estimates for the next years, ARR will show a small growth in Earnings Per Share. The EPS will grow by 7.28% on average per year.
The Revenue is expected to grow by 136.98% on average over the next years. This is a very strong growth
EPS Next Y9.23%
EPS Next 2Y7.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year292.05%
Revenue Next 2Y136.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ARR is valuated cheaply with a Price/Earnings ratio of 5.13.
Compared to the rest of the industry, the Price/Earnings ratio of ARR indicates a rather cheap valuation: ARR is cheaper than 96.88% of the companies listed in the same industry.
ARR is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.70 indicates a rather cheap valuation of ARR.
98.44% of the companies in the same industry are more expensive than ARR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ARR to the average of the S&P500 Index (22.68), we can say ARR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 4.7 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ARR is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.03 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.56
PEG (5Y)0.54
EPS Next 2Y7.28%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.21%, ARR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 12.96, ARR pays a bit more dividend than its industry peers.
ARR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.21% |
5.2 History
The dividend of ARR has a limited annual growth rate of 1.50%.
ARR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.5%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of ARR are negative and hence is the payout ratio. ARR will probably not be able to sustain this dividend level.
ARR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-617.73%
EPS Next 2Y7.28%
EPS Next 3YN/A
18.89
-0.05 (-0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners44.51%
Inst Owner Change24.86%
Ins Owners0.24%
Ins Owner Change4.35%
Market Cap1.05B
Analysts50.77
Price Target20.4 (7.99%)
Short Float %5.32%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.21% |
Yearly Dividend2.93
Dividend Growth(5Y)1.5%
DP-617.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.52%
Min EPS beat(2)-21.46%
Max EPS beat(2)0.42%
EPS beat(4)2
Avg EPS beat(4)-7.15%
Min EPS beat(4)-21.46%
Max EPS beat(4)8.45%
EPS beat(8)3
Avg EPS beat(8)-4.55%
EPS beat(12)6
Avg EPS beat(12)-1.29%
EPS beat(16)6
Avg EPS beat(16)-4.37%
Revenue beat(2)0
Avg Revenue beat(2)-85.01%
Min Revenue beat(2)-96.41%
Max Revenue beat(2)-73.6%
Revenue beat(4)0
Avg Revenue beat(4)-87.26%
Min Revenue beat(4)-96.41%
Max Revenue beat(4)-73.6%
Revenue beat(8)0
Avg Revenue beat(8)-85.65%
Revenue beat(12)1
Avg Revenue beat(12)-120.31%
Revenue beat(16)3
Avg Revenue beat(16)-99.28%
PT rev (1m)-0.83%
PT rev (3m)-2.44%
EPS NQ rev (1m)-2.32%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)28.83%
Revenue NQ rev (3m)27.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-62.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 4.7 | ||
| P/S | 1.87 | ||
| P/FCF | 4.03 | ||
| P/OCF | 4.03 | ||
| P/B | 0.77 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.68
EY19.48%
EPS(NY)4.02
Fwd EY21.28%
FCF(TTM)4.69
FCFY24.82%
OCF(TTM)4.69
OCFY24.82%
SpS10.1
BVpS24.42
TBVpS24.42
PEG (NY)0.56
PEG (5Y)0.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -1.94% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 1.09% | ||
| FCFM | 46.41% |
ROA(3y)-1.14%
ROA(5y)-1.48%
ROE(3y)-9.99%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-71.79%
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.87 | ||
| Debt/FCF | 40.98 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.01 | ||
| Quick Ratio | 0.01 | ||
| Altman-Z | -1.06 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.86%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%-27.1%
EPS Next Y9.23%
EPS Next 2Y7.28%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.36%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%118.97%
Revenue Next Year292.05%
Revenue Next 2Y136.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y78.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y96.86%
FCF growth 3Y181.37%
FCF growth 5YN/A
OCF growth 1Y96.86%
OCF growth 3Y181.37%
OCF growth 5YN/A